Lehigh Valley unemployment falls to 8.2 percent in January, the lowest point in three years

Express-Times File Photo | MATT SMITHAttendees at the Lehigh Valley Job Fair fill out applications last fall at Agricultural Hall at the Allentown Fairgrounds. The area jobless rate fell to 8.2 percent in January.

The Lehigh Valley job market, recovering from the worst nationwide downturn since World War II, advanced in January as jobs grew and unemployment fell, according to a state report released today.

The region’s jobless rate dropped to 8.2 percent — the lowest in nearly three years — compared with 8.4 percent in December, the state Department of Labor & Industry reports.

The Lehigh Valley also added 1,100 nonfarm jobs to a seasonally adjusted estimate of 342,000.

Steven Zellers, an analyst with the state labor department, said the latest report confirmed steady but not strong progress.
The current jobless rate is still relatively high compared with the pre-recession norm of about 5 percent.

For years, the economic recovery has often sputtered with sporadic hiring since the Great Recession was formally declared over in mid-2009.
Zellers said that appears to be changing.

“Lately, most areas, most industries, are improving,” Zellers said. “It’s getting almost to where a rising tide lifts all boats, but we really need to see February and March figures before we can say that with any authority.”

January marks the first time local unemployment was at 8.2 percent since April 2009, according to recently revised state figures. February data is not yet available.

The labor force also grew in January by 2,100 people, suggesting that more individuals gained enough confidence about job prospects to enter the search.

Kamran Afshar, a Bethlehem-based economist, said trends are encouraging because growth is happening in the private sector.

Government employment, meanwhile, fell in January to 40,900. That figure has declined steadily since spring 2010, when it was about 44,000.

“The private sector is not only growing, it’s growing enough to offset the government sector, which is shrinking,” Afshar said.

January figures do not reflect recent shutdowns of two manufacturers.

Cadmus Specialty Publications last month said it would close its Wilson Borough plant in April, cutting 195 jobs. In addition, International Battery in Upper Macungie Township abruptly closed last week, affecting about 60 workers.

Zellers called the closures setbacks but predicted they will impact the overall jobless rate no more than a fraction of a point.

“Obviously, it still hurts,” Zellers said.

The state combines Northampton, Lehigh, Warren and Carbon counties when compiling local data.

Regional unemployment fares worse than the Pennsylvania average of 7.6 percent and slightly better than the national rate of 8.3 percent. New Jersey reports 9 percent joblessness.